jury convicts two men of corruption and bribe conspiracy involving US Department of Defense contracts | USAO-EDVA
ALEXANDRIA, Virginia – A federal jury convicted two men today for participating in a bribery conspiracy involving a contract for the Office of the Inspector General of the US Department of Defense (DoD OIG).
According to court records and evidence presented at trial, beginning in 2010 and continuing through 2015, William S. Wilson, 56, of Florida, was the owner of a small construction company based in Lake Butler, Fla. , who paid numerous bribes to co-conspirators. Among other things, Wilson paid tens of thousands of dollars in bribes to Matthew K. LumHo, 46, of Fairfax Station, then employed by the Information Services Directorate of the DoD OIG. In return, LumHo took official acts that benefited Wilson’s businesses, including directing work to Wilson’s business by placing fraudulent service orders under a government contract that LumHo controlled.
Evidence presented at trial further proved that during the same period of 2010 to 2015 Wilson also paid numerous bribes to Ronald Capallia and another employee of a telecommunications company who was a prime government contractor. Wilson paid these bribes to Capallia and the other person to get them to lead the work and give Wilson’s companies favorable treatment as contractors to the telecommunications company.
One of the major subcontracts going to Wilson’s company was for a master contract between the telecom company and the DoD OIG, in which the telecom company was supposed to provide various IT related services to the government. . Wilson’s company was awarded this subcontract despite its lack of relevant experience or expertise, and despite the lack of employees based in or near Northern Virginia, where all work had to be. performed.
Wilson often disguised bribes from Capallia, LumHo, and another person by fake invoices for services that had never been provided, or by hiding payments as payroll from relatives of Capallia and LumHo for jobs that did not actually exist.
As the scheme progressed, the co-conspirators led the government to submit numerous bogus and fraudulent service orders under the main contract. Fake service orders generally described the items provided as specialized IT support services, when in fact the co-conspirators were simply purchasing standard off-the-shelf items, drastically marking up the price and charging the government as if they were. had been provided. with specialized IT services. The co-conspirators also used fraudulent service orders to cover up bribes in the form of high-end camera gear and stereo equipment sent from Wilson to LumHo, forcing the government to pay for the bribes. -wine that Wilson was sending to LumHo.
Evidence adduced at trial further demonstrated that the co-conspirators repeatedly sought to interfere with the criminal investigation by creating false documents, making false statements to law enforcement officials, lying about a financial disclosure form, committing perjury during a civil sworn testimony and forging or attempting to tamper with a witness. Additionally, Wilson threatened to assassinate Capallia and her family members by slitting their throats if Capallia ever testified on behalf of the government.
Co-conspirator Ronald A. Capallia, Jr., 40, pleaded guilty on January 25, 2018 for his role in the conspiracy and will be sentenced on September 14, 2021.
Wilson and LumHo each face a maximum sentence of 20 years in prison when convicted on October 15. The actual sentences for federal crimes are generally less than the maximum sentences. A federal district court judge will determine any sentence after taking into account US sentencing guidelines and other statutory factors.
Raj Parekh, Acting United States Attorney for the Eastern District of Virginia; Timothy R. Thibault, Acting Special Agent in charge of the Criminal Division of the FBI Field Office in Washington; and Kelly P. Mayo, Deputy Inspector General for Investigations in the Office of the Inspector General of the Department of Defense, made the announcement after U.S. District Senior Judge Liam O’Grady accepted the verdict.
US Assistant Prosecutors Matthew Burke and Russell L. Carlberg are continuing the case.
A copy of this press release can be found on the website of the United States Attorney’s Office for the Eastern District of Virginia. Court documents and related information can be found on the Virginia Eastern District Court website or on PACER by searching for Case # 1: 17-cr-222.